The effect of regulatory focus and performance measurement on corporate social responsibility investment decisions

Abstract

Purpose This paper aims to investigate the relationship between regulatory focus, performance measurement and corporate social responsibility (CSR) investment decisions. Design/methodology/approach Using an experimental method with a 2 × 2 between-subjects factorial design involving 144 participants, the data were analyzed using t-test and contrast test. In the experiment, the authors assigned participants into prevention focus or promotion focus group and complementary performance measurement or substitute performance measurement condition. Findings The results show that CSR investment is more preferable for managers in prevention focus instead of those in promotion focus group. Additionally, CSR investment is more preferable for managers in complementary performance measurement condition compared to those in substitute performance measurement condition. This study also provides evidence that the greatest CSR investment is reached when managers are in both prevention focus group and complementary performance measurement conditions. Practical implications Companies need to activate the prevention focus for managers to motivate CSR investment. Additionally, companies need to use complementary performance measurements, which consist of CSR measurement and financial measurements. Originality/value CSR research is dominated by theories explaining the external models which trigger companies to perform CSR. Existing research related to the internal models is limited to psychological aspects that are not directly related to company performance. This study investigates the motivational attributes that have a direct and strong influence on managers behavior. This research shows that regulatory focus is better at predicting CSR investment and is more motivational for individuals to perform well at work.

Business Strategies and Competitive Advantage: The Role of Performance and Innovation

“…Recently, as the era of business competition has become tougher, business people must continuously find ways and strategies to overcome competition in their respective fields [26]. In choosing the business models and concepts to be used, ideally, business people should be able to combine internal factors, particularly resources, and look at the structure of the industry externally [27,28]. After analyzing the industry structure based on external factors, the company might have maximized all components of internal resources (resources) by creating various advantages.…”

Impact of corporate social responsibility on financial expert CEOs' turnover in heavily polluting companies in Bangladesh

“…Numerous researchers use the reputation index method and the content analysis method. For the purpose of examining the authority and accessibility of measurement factors, this article draws upon Galant and Cadez (2017), Kong et al (2020), Latif and Sajjad (2018) and Rokhayati et al (2021). A separate formula is used to calculate the company's contribution to its stakeholders.…”

“…Thus, by replacing financial background executives, the previous company will be unable to make the same strategic decisions, while the new executives may be less familiar with financial information, capital markets operations, and long‐term strategies than the previous executives (Naheed et al, 2021). As a result, the focus may be on short‐term performance for the sake of winning the trust of short‐term shareholders and investors and reducing investments in CSR after a change of senior management (Rashid et al, 2020; Rokhayati et al, 2021). In light of the above analysis, this article proposes Hypothesis 1:Hypothesis In heavy‐polluting companies, there is a significant negative relationship between financial expert CEOs and corporate social responsibility.…”

The Influence of Digital Literacy on Learning Effectiveness Through Classroom Management

“…Digital literacy used to carry out the learning process requires transformation by using digital tools such as laptops, tablets, smartphones, and other social media tools to support better and provide suitable means of motivating learning (Mahfud, 2021). The ability to create a website using HTML (hypertext markup language) is the basis, and the use of Photoshop for graphic works and MS Office makes the importance of digital Literacy (Techataweewan & Prasertsin, 2018).…”

“…Effective learning makes the learning process used to provide knowledge and understanding for teachers to students to achieve the goals set (Panigrahi et al, 2021). Educators will become more active when training themselves and more agile in understanding digital tools such as laptops, tablets, smartphones, and other social media tools (Mahfud, 2021).…”